Best Factoring Companies 2020
FactoringClub evaluates contract terms, customer service and company leadership from more than 125 of our sponsor factoring companies. Select one of these companies and you know that you’re getting the best!
Low startup fees, short-term contracts, no minimum fees, and selective invoicing.
Customer service that is friendly, professional, transparent and responsive.
Company leaders that have proven track-records in the factoring industry.
Award-winning factoring companies 2020
Porter Billing Services is the freight factoring division of Porter Capital. They provide 2-hour approvals with the lowest rates in the industry. They offer a monthly contract with 100% advance rates (less fees) and no startup fee.
FSW Funding has been delivering invoice factoring to businesses all across the country since 2001. You get personal one-on-one attention with caring experienced staff. They provide quick approvals and a no-term contract with no minimum fees.
Provident Commercial Finance is a factoring company that provides factoring services for all business types. You'll get prompt and courteous customer service. They offer a no-term contract with no minimum fees and no startup fee.
Orange Commercial Credit has been providing factoring services since 1979. You get a professional dedicated account manager, online credit services, and the highest advance rates in the industry. They offer a 90-day contract with no minimum fees and no startup fee.
CoreFund Capital is a factoring company in the Dallas / Fort Worth area that specializes in freight factoring. They provide extended service hours on weekdays and Saturdays. They offer a 90-day contract with no minimums and no startup fee.
“Our award-winning factoring companies represent the cream of the crop. Great terms, solid customer service and outstanding leadership.”
Accounts receivable factoring
Factoring companies offer rates as low as 1% for the largest businesses that generate millions in revenue each month from AAA rated customers. Smaller businesses can expect to pay anywhere between 2% to 5% of the invoice amount depending on monthly factoring amount, invoice volume, and days outstanding.
The trucking industry is huge and factoring rates are very competitive. Large trucking companies can get rates as low as 1%, while owner-operators and small trucking companies can expect to pay at least 2-3% of their freight bills for their factoring services.
Factoring companies usually don’t advance the full amount of your invoices. They hold a reserve as an allowance for any unexpected bad debts or short-falls. Advance rates are typically 75% to 90%. However, freight and trucking advance rates are much higher, typically 90% or more. Some truck factoring companies offer fully-funded or 100% advance rates, in which they only deduct their factoring fees from your cash advances.
Contract terms range anywhere from one month to 2 years, with some factoring companies offering a no-term contract that lets you cancel at any time.
Other things to consider are monthly minimums and non-recourse factoring. Some factoring companies charge monthly minimum fees. You pay factoring fees if you don’t factor a minimum amount stated in your contract. Non-recourse factoring is a credit guarantee that protects you if your customer doesn’t pay. Read our recourse vs non-recourse article for more details. Non-recourse factoring usually costs more.